Hometown Food Company, maker of Pillsbury baking products, up for sale-sources

Sovos Brands

26/01/2024 14:31

By Abigail Summerville
       Jan 26 (Reuters) - The private equity firm that owns
Hometown Food Company is exploring a sale of the maker of
Pillsbury's shelf-stable baking products and Birch Benders,
according to people familiar with the matter.
    Brynwood Partners, which has owned Hometown for the last
five years, is working with investment bank Houlihan Lokey
 HLI.N  on a sale process that could value Hometown at around
$800 million, the sources said. 
    Hometown generates around $90 million in 12-month adjusted
earnings before interest, taxes, depreciation and amortization. 
    The sources requested anonymity because the matter is
confidential. Brynwood and Houlihan Lokey declined to comment.
Hometown did not respond. 
    Hometown supplies grocery stores, convenience stores,
wholesalers and other channels. 
    In 2018, Brynwood acquired the Pillsbury shelf-stable baking
business, Hungry Jack, Funfetti and other assets from the J.M.
Smucker company for $375 million. Brynwood created Chicago-based
Hometown to acquire the assets from Smucker.
    In 2019, Hometown bought the Arrowhead Mills and SunSpire
brands of the Hain Celestial Group. Last year, it acquired Birch
Benders from Sovos Brands. Birch Benders makes pancake and
waffle mixes, frostings and toaster waffles with keto, paleo,
and organic options.

 (Reporting by Abigail Summerville in New York
Editing by Mark Potter)
 ((abigail.summerville@thomsonreuters.com;))